ISELIN, N.J., March 23 /PRNewswire/ -- Pharmos Corporation announced
today that it has received a Notice of Allowance from the U.S. Patent and
Trademark Office for a new patent entitled Tumor Necrosis Factor Alpha
Inhibiting Pharmaceuticals, with claims covering the use of dexanabinol
as well as various non-psychotropic cannabinoid analogs, derivatives or
metabolites in the treatment of multiple sclerosis.

The new patent defines novel therapeutic applications for the use of
dexanabinol and other synthetic, non-psychotropic analogs of cannabinoids.
In preclinical tests, Pharmos has demonstrated that dexanabinol could exert
anti-inflammatory effects by preventing the production or release of Tumor
Necrosis Factor (TNF) alpha.

These compounds are also advantageous in that they do not produce certain
side effects of other anti-inflammatory drugs used in the treatment of
multiple sclerosis, such as steroids, and particularly in that they do
not cause the psychoactivity of natural cannabinoids.

"We are very pleased with the granting of this patent," said Dr. Haim
Aviv, Pharmos' Chairman and CEO. "Our expectations of dexanabinol having
multiple neurological applications are confirmed by, among other factors,
its amelioration of the severity of multiple sclerosis in animals.

Dexanabinol's neuroprotective properties could also be beneficial by
preventing or decreasing the cumulative neurological damage caused by multiple
sclerosis, which is a chronic degenerative disease. We are looking forward
to the beginning of Phase III trials to confirm dexanabinol's efficacy
in head trauma patients."

The recent completion of a successful Phase II clinical study showed
dexanabinol to be safe and well-tolerated in severe head trauma
patients. There were no unexpected adverse experiences reported for
either the drug treated or placebo group.

Intracranial pressure, an important factor and a predictor of poor neurological
outcome, was significantly reduced in the drug treated patients through
the third day of treatment, without a concomitant reduction in systolic
blood pressure.

The patent allowance follows last week's much anticipated report from
the National Academy of Sciences' Institute of Medicine (IOM) evaluating
the medical benefits of marijuana.

The IOM, which was commissioned by U.S. drug czar Barry McCaffrey, found
that marijuana's active components are potentially effective in treating
muscle spasms associated with multiple sclerosis, AIDS related anorexia,
pain, nausea, and other ailments.

However, due to the risks associated with smoking marijuana -- lung
damage, cancer, and emphysema -- the drug should be administered by a safer,
fast-acting, and reliable method. The report recommends that more clinical
trials be performed to develop a smokeless alternative to treat patients.

The worldwide market for dexanabinol in the treatment of severe head
trauma may reach $1 billion annually and is significantly larger if other
neurological conditions such as multiple sclerosis and stroke are treated
with the drug. An estimated 2.5 million people suffer from multiple sclerosis,
which is most commonly found in the United States, Canada, Europe, and
South America.

Pharmos Corporation is a pharmaceutical company specializing in the
modification of existing molecules through proprietary techniques to reduce
undesirable side effects and/or enhance efficacy.

This news release contains forward-looking statements that involve risk
and uncertainties. The development of the company's products may differ
materially from the company's expectations. Among the factors that could
result in a materially different outcome are the inherent uncertainties
accompanying new product development, action of regulatory authorities
and the results of further trials.